Mr Morrison's first stop was in Orange where he was joined by Water Resources Minister David Littleproud and Education Minister Dan Tehan as they attended a meeting of the board of the National Drought and North Queensland Flood Response and Recovery Agency.

From there they travelled to Blayney where they inspected a new equestrian centre, taking the opportunity to announce an extension of federal government drought relief funding.

The Bathurst, Dubbo, Cabonne and Blayney local government areas all qualified for the extra funding while Orange City Council was advised to look to the state government for funding for more water storage.

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Mr Morrison said the new funding, to the tune of $1 million for Bathurst, acknowledged that the impacts of drought spread well beyond the farm gate.

"While we know the nation has been gripped in recent months by the bushfire crisis I want all Australians impacted by drought to know that [people suffering though drought] have remained firmly in our government's focus," Mr Morrison said.

"You remain at the centre of relief, response and recovery plans for the future and making Australia more resilient to these challenges in the future.

"This funding will support local tourism initiatives, new infrastructure and amenities, and funding to help non-government schools facing financial hardship as a result of drought."

Bathurst mayor Bobby Bourke welcomed the extra funding, saying every bit helped.

"In these tough times of drought and bushfires any funding from the federal government is appreciated," he said.

"Council is still working through the details of the funding with the federal government and will keep talking to the state government about funding for a number of drought projects."

Mr Littleproud defended the decision to cut Orange from list of eligible councils, saying the line had to be drawn somewhere.

"This is not about anything other than stimulating those economies that are the hardest hit," he said.

Mr Littleproud said the federal government would support the states, but building dams was a state responsibility.

Mr Tehan announced a further $10 million for independent schools to help parents in need afford fees, building on an initial $10 million announced before Christmas.

Meanwhile, Drought and North Queensland Floods co-ordinator General Shane Stone confirmed up to four staff would move to Orange to start a regional office.